Google to Produce Smartphones in Vietnam, Reports Nikkei Asia

• High-end Pixel models (Pixel, Pixel Pro, and Pixel Fold) will undergo new product introductions (NPI) in Vietnam starting this year
• Lower-end Pixel A series development and manufacturing will continue in China for now
• The report could not be immediately verified by Reuters at the time of publication

Summary: Google to Manufacture Smartphones in Vietnam

Key Development:

Google plans to begin developing and manufacturing high-end smartphones in Vietnam in 2024, according to a Nikkei Asia report citing unnamed sources. Reuters has not independently verified this information.

Product Details:

The manufacturing shift will include Google's premium smartphone lineup: the Pixel, Pixel Pro, and Pixel Fold models. New product introductions (NPI) for these devices will commence in Vietnam. However, production of the lower-end Pixel A series will remain in China for the time being.

Market Implications:

This move represents a significant supply chain diversification strategy for Google, aligning with broader industry trends of reducing manufacturing concentration in China. Vietnam has emerged as an attractive alternative manufacturing hub for technology companies due to its competitive labor costs, growing manufacturing infrastructure, and favorable trade relationships.

The decision to manufacture high-end models in Vietnam while keeping budget devices in China suggests a strategic approach to balancing production costs with geopolitical risk management. This mirrors similar moves by other tech giants seeking to de-risk their supply chains amid ongoing U.S.-China tensions and global trade uncertainties.

Industry Context:

Vietnam has increasingly positioned itself as a key player in global electronics manufacturing, attracting major technology companies seeking alternatives to Chinese production. This development could strengthen Vietnam's role in the global smartphone supply chain and potentially impact the country's manufacturing sector growth.

The announcement comes as tech companies continue to reassess their manufacturing footprints in response to geopolitical pressures and supply chain resilience concerns.